Life Insurance Premium Mobilisation Rises by 5.13% in FY25

The Indian life insurance industry witnessed a healthy growth of 5.13% in total new business premium collection in the financial year 2024–25, showing improved momentum compared to the previous year. The individual new business premium segment surged by 11.17%, indicating increased participation from first-time policyholders. This growth reflects the industry’s strategic focus on expanding market reach and providing comprehensive financial protection.

Key Highlights of FY25 Life Insurance Performance

Overall Growth

• New business premium for the life insurance sector rose by 5.13% in FY25.
• Previous fiscal year (FY24) saw a modest 2% growth.

Premium Collection Figures

• FY25: ₹3,97,336 crore
• FY24: ₹3,77,960 crore
• Absolute increase: ₹19,376 crore

Individual New Business Premium

• FY25: ₹1,66,590.81 crore
• FY24: ₹1,49,851.67 crore
• Growth: 11.17%

LIC’s Performance

• Total new business premium: ₹2,26,669 crore
• Individual new business premium: ₹62,404 crore (record high)
• LIC’s market share: 57.05%

Industry Commentary

• Growth driven by focus on first-time buyers and comprehensive coverage.
• In March 2025, combined individual premium collection rose by 4.47%.